Document background
The Guarantee For Rental Agreement is a crucial document in the Philippine real estate sector, used when additional security is required beyond a standard rental agreement. This document becomes necessary when landlords seek extra protection for their rental income, particularly for high-value properties or when dealing with tenants who may have limited credit history or financial credentials. The guarantee, governed by Philippine law and structured according to the Civil Code's provisions on suretyship, creates a legally binding commitment from a third party (guarantor) to fulfill the tenant's obligations if they fail to do so. Common scenarios for its use include corporate rentals where parent companies guarantee subsidiaries' leases, residential rentals where parents guarantee their children's student accommodation, or commercial leases where directors personally guarantee their company's rental obligations. The document typically covers rent payments, utility bills, property damage, and other lease-related obligations.
